Compliance Officer

The work depends on the sector and the firm's size. In a small firm one person may do all of it. In a large bank, specialists cover areas such as conduct, financial crime, data protection and regulatory change. Typical tasks include interpreting new rules, drafting policies, approving new products and marketing material, running risk assessments, testing controls, investigating complaints and preparing reports for senior management. Officers advise but do not own the risk: line managers do. To do the job properly the officer needs access to information, an ear at senior level and enough independence to say no without fear for their career. Some regulators require named officers in roles such as money laundering reporting or sanctions compliance, with personal responsibility. An officer whose advice is routinely overruled, or who is never consulted, tells a reviewer that the function is decorative.

A compliance officer at a fund manager is asked to approve a brochure for a new fund. She finds a claim that the fund is low risk, which the fund documents do not support. She sends it back with suggested wording, records the review and later checks that the corrected brochure is the one used.